This month’s EMEA Finance features BNY Mellon’s Head of Treasury Services, Dominic Broom, examining how new financial technology – “fintech” – is making its mark on the payments industry. The world has “awakened to the potential of fintech”, with global investment on the increase. Broom discusses the positive impact that initiatives such as SEPA and TARGET2-Securities have made in the banking industry. Whilst the increasing fintech presence has benefited the retail sector, the movement towards real-time payments presents challenges for the corporate sector and banks will have to consider real-time payments in their longer term strategies.
Banks are “increasingly delving into the world of fintech, exploring a variety of approaches to ensure they are well-positioned for the future of payments”. Broom explains how they are deploying different tactics, such as venture-capital style investments and accelerator and sponsorship programmes. For a successful forward-looking strategy, banks need to be directly immersed in fintech innovation, forming a collaborative approach with fintech firms.
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